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The US-based $6-billion ATM (automatic teller machine) manufacturer NCR Corporation is setting up a ₹500-crore facility at Mahindra World City, to the south of Chennai.
NCR has a presence in 180 countries and has six manufacturing facilities in the US, Europe and Asia.
In India, it manufactures ATMs in multiple locations in Puducherry. It will shut down these units and shift to the new facility in a year’s time. It employs over 3,000 people, including those at its R&D facility.
Announcing the company’s plan for the new facility at a press conference here on Thursday, Jaivinder Gill, Regional Vice-President (India and South East Asia), NCR, said it will offer the advantage of manufacturing these machines under one roof and improve efficiency. Besides, he said, the new location will give it proximity to vendors, logistics facilities and human resource.
Though he refused to share the details regarding the proposed investment in the new facility, sources in the know revealed that it might entail anywhere between $80-100 million, and will have capacity to produce at least 100,000 ATMs a year. Besides, it also proposes to manufacture POS (point of sale) machines, automatic self-checkout machines and product dispensers for the retail and hospitality industries.
Growing market “The growing Indian financial market, and the government’s key agenda of financial inclusion hold a great promise for our business,” said Robert Visintainer, Vice-President, NCR Global Manufacturing.
With 44 per cent share of the current installed base of 1.6 lakh ATMs in the country, NCR is the market leader, followed by Diebold (around 27 per cent) and Wincor Nixdorf (23 per cent). According to a global study on ATMs, on an average, 6,000 cash withdrawals take place at each ATM every month. This is growing at 25 per cent year on year. The number of installed ATMs grew 20 per cent in the last few years. In the next four years, it is expected to grow at a compounded annual growth rate of 26 per cent to reach 4.4 lakh ATMs by 2018, says the study. Gill said each machine costs between ₹3.5 lakh and ₹ 6 lakh.
According to him, NCR also proposes to export at least 10-15 per cent of its production to South East Asia.
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